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(Reuters) – Polymer maker Synthomer Plc said on Wednesday it has agreed to buy Omnova Solutions Inc for an enterprise value of $824 million in a bid to strengthen its global position.

London-based Synthomer is offering Beachwood, Ohio-headquartered Omnova $10.15 for each share, a premium of 58% to Omnova’s closing price on Tuesday.

Shares of Synthomer fell 5% to 352.4 pence, making them the top loser on the FTSE 250 index. Omnova shares surged 55 percent on the New York Stock Exchange to trade at $9.96.

Acquiring Omnova will help Synthomer bolster its footprint in Europe and Asia and penetrate into China, Synthomer said in a statement.

The deal will be financed through a rights issue of up to $257 million and is likely to be completed by late 2019 or early 2020.

Five years ago, Omnova faced pressure from activist investor Barington Capital Group. In 2015, the company agreed to add two of the New York-based hedge fund’s representatives to its board: Barington Capital founder James Mitarotonda and specialty chemicals industry executive Joseph Gingo. A year later Omnova named Anne Noonan as chief executive officer to replace Kevin McMullen but the company, a subscale business in a fast consolidating industry, still struggled.

Upon completion of the deal, Synthomer expects it will add to its earnings in the first financial year and projects an annual pre-tax cost savings of $29.6 million by the end of the third year.

Separately, Omnova said its second-quarter profit fell over 33% to $5.6 million, hurt by volatile markets and challenging economic conditions.

Reporting by Ismail Shakil and Tanvi Mehta in Bengaluru and Svea Herbst-Bayliss in Boston; Editing by Arun Koyyur and David Gregorio

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